Only one US stock and one Singapore passed by technical screen this week, and unfortunately none of them passed the fundamental scan this we...

Weekly Superstock Scan 31 Oct - 4 Nov 2016: Nil

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Only one US stock and one Singapore passed by technical screen this week, and unfortunately none of them passed the fundamental scan this week. The number of stocks passing the technical screen this week was abnormally low. Let's hope that things will start to pick up again in next few weeks.



It is in my plan for the next few months to also look at stocks that pass the technical screen but not the fundamental screen to determine if stocks that pass the technical screen perform better than stocks that do not. Therefore this week we will briefly mention on some of these stocks.

On the US front the stock that passed the technical screen was Marine Products Corp (MPX). In fact, on the fundamental front MPX is strong with 5 consecutive quarters of EPS growth. Unfortunately, the catalyst for the spike was in increase in the price of tender offer to $9.64 per shares. In a way it is artificially propping up the price of a stock that lacks liquidity. This will also mean that stocks are unlikely to move above $9.64 at the rate the company is growing.

While the catalyst for MPX is a weak one, things are worse on the Singapore front. For Libra Group (SGX: 5TR), the only announcement for the week is a release of charge on 3.4 million shares from one stockholder to another, and in the week the stock surged 30% with three times average volume. We shall see next week if there will be any other news coming out from the company.

The other Singapore stock, Global Invacom Group (SGX: QS9) surged two weeks ago possibly on RHB's reiteration of its buy call. However, the spike could not be sustained the the stock retraced significantly last week. Not a low risk entry for the lack of catalyst.


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